Digital World Acquisition Corp (DWAC) stock roars ahead on Trump 2024 presidential bid
- Donald Trump has announced a new presidential run for 2024.
- His main Republican competitor for the party primary looks like Ron DeSantis.
- Trump's picks for the 2022 midterm elections fared quite poorly.
- DWAC stock rallies again on the US presidential candidacy announcement.
Digital World Acquisition Corp (DWAC) advanced 5.2% in Wednesday's premarket a day after former President Donald Trump announced his candidacy for the US presidential election in 2024 once again. Trump won the 2016 election against Hillary Clinton but lost the 2020 election against current President Joe Biden. If he wins the Republican primary in the summer of 2024, then he will once again face Biden in a rematch.
This news reflects well on DWAC stock since it is still straining to gain the necessary shareholder votes to extend the timeline for merging with Trump's social media platform TRUTH Social.
DWAC stock news
Digital World shares advanced to $26.69 in the premarket after Trump announced his presidential bid at his private club Mar-a-Lago in Florida.
"Two years ago, we were a great nation, and soon we will be a great nation again," Trump said to applause.
Florida was a perfect state in which to announce his bid as most pundits think Florida Governor Ron DeSantis is the likely frontrunner in the race. DeSantis won his governor race by a wide margin last Tuesday, November 8, while the majority of major Republican politicians in tossup races tended to lose to the Democrats. The Republican Party elite has already signaled their willingness to leave Trump and his foibles behind and instead support the new popular governor from Florida.
Much of this negativity regarding Trump from his own party stems from his publically-supported candidates in the midterm elections held last week largely coming up short. Mehmet Oz and Herschel Walker failed to achieve majorities in Pennsylvania and Georgia Senate races, respectively, although the Georgia race will head to a runoff election in December. Arizona gubernatorial candidate Kari Lake also lost her bid and was a prominent advocate of Trump's 2020 election denial.
Digital World still has until November 22 to meet the necessary threshold for proxy votes to extend its merger timeline to November of 2023. DWAC needs 65% of shareholders to support the merger extension, something they have failed to do on numerous occasions over the past five months. If they fail to obtain the necessary 65% of 'Yes' votes, DWAC may be forced to liquidate after December 8 and give back $10 a share to every shareholder.
DWAC stock forecast
After Tuesday's 8.8% sell-off, DWAC shares are back below the overbought region on the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) indicator is still showing a rally in progress as the signal line remains above the MACD line.
Bulls will hope to use this momentum to overtake the resistance at $29.65 from November 7 and 8. Above there is a supply zone that should offer further resistance between $32 and $33.60. Support sits at $25 and $21.88.
DWAC 1-day stock chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
